Nokia Off 13%: Unveils Lumia 920, 820; Ballmer Puts in Appearance

By

Tiernan Ray

Updated Sept. 5, 2012 11:30 a.m. ET

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Nokia (NOK) CEO Stephen Elop took the stage at a Chelsea loft space in Manhattan this morning, kicking off an unveiling of new devices running on Microsoft's (MSFT) "Windows Phone" operating system, the two companies' latest bid to make headway in market dominated by Apple (AAPL) and Google (GOOG)

The company unveiled two new devices, the "Lumia 920" and the "Lumia 820," representing the high-end and more mainstream versions of the line that Nokia introduced last year. Detail on the devices is available at Nokia's product site.

The shares swooned during the event, apparently selling off on the news. The stock is down 38 cents, 13.4%, at $2.45. There was some discussion by analysts of the disappointing lack of details on pricing and availability for the devices, and the lack of "punch" or "wow" in the Windows software functions discussed.

Elop started the presentation by talking about how Nokia strove to replace the "grid of applications," and the dull text layout, of most smartphones, when the partnership with Microsoft first began.

Elop mentioned that China is now the biggest market for these "Lumia" phones. Elop also took time to discuss the "Asha" brand of low-cost phones, which are popular in India, for instance. Elop noted that people are starting to consider Asha as low-cost smartphones.

Elop says part of the company's intention is "future disruption," which includes not just fundamental work on battery and display technology, but also changing what people think of as an "ecosystem" for mobile devices.

Elop invites up Jo Harlow, director of the team within the Mobile Devices unit that is bringing forth the "next step." Cue the pounding music and video of a yellow Lumia handset flying together in space.

"Today we are introducing the next generation of Windows Phone, the Lumia 920."

(As you can see from some of the images in this post, there is a heavy theme of simple, primary colors that runs through the Lumia line, including the phone casings but also the peripherals/accessories designed for it.)

The 920 includes Nokia's "PureView" camera, something called "PureMotion HD+" an enhanced display technology, and mapping capabilities, including "Nokia Drive" and "Nokia Transport."

Harlow notes that two things bedevil smartphone photography: bad lighting, and an inability to monkey with settings when one is on the go. A result frequently is blur. But PureView, she says, captures between five and ten times as much light, using something called "floating lens technology," which Harlow says surpasses the technology in many DSLRs.

Harlow talks about the location-based applications. Off-line maps will be a "key feature." It's not just cached data, but "true off-line maps." One can find a route and go right into Nokia Drive to get free turn-by-turn driving directions, and even get a reminder for when you need to leave your point of origin, based on the projected travel time.

There's a new feature in locations, "Nokia City Lens." Point the camera at a building, and the phone will tell you what that restaurant, say, is called, and will give your more information about it.

Harlow says the same "augmented reality" functionality will be available in the mapping function anytime you lift up the phone and point it at something.

The phone contains the Qualcomm (QCOM) "Snapdragon S4" microprocessor and a 2000 milli-amp battery, the combination of which should make the device 30% more battery efficient than other smartphones.

The 920 supports wireless charging. Harlow shows off something called the Fatboy Pillow charging block, which is, indeed, like a big pillow you can put the phone on, so when you lie down in bed, you can charge the phone, she says, to much laughter.

Harlow invites up Microsoft's Joe Belfiore, the head of Windows Phone development, to give some updates on what Win Phone 8 does for photography and other functions.

After demonstrating the familiar action of rearranging "live tiles" on the Win Phone "Start Screen," Belfiore mentions apps, of which there are now over 100,000 for Win Phone. There is a new function in Internet Explorer for seeing opened tabs. Belfiore shows off the "Pulse" Web site, which he emphasizes is re-scaled for the phone's display, by dint of HTML5, but is actually the same web site "as you would have on your Windows slate, or desktop."

Moving to photography. The "zoom bar" is gone from the screen, because Win Phone 8 now supports zooming by pinching the screen.

But Belfiore emphasizes the "lenses" button, which brings up a menu of buttons in front of the image on screen when you're in the camera. It will let you do things such as add special effects, or get information about what's on screen, or take panoramic images.

Nokia senior vice president Kevin Shields is up on stage to discuss the technologies some more. He shows off the ability to press the screen even with large mittens on his hands. "Something your buddy can't do with his smartphone" and that can be useful if you work in Finland!

Shields notes that the phone has "near field communications" or NFC, the short-range broadband wireless radio, which allows him to place the phone next to a set of JBL speakers and have the music on the phone play wirelessly through the speakers. You can also place the Lumia on top of the speakers and charge it wirelessly. There is also a very snappy looking set of yellow wireless headphones.

Shields does a demo of "SmartShoot," which can take a series of pictures and then eliminate things you don't want and assemble all the images into a shot devoid of the unwanted details. For example, an art gallery where people are standing in front of the picture you want to photograph. Take multiple images and the software will find all the places around those spectators and cut the spectators out of the final image.

Shields introduces another model, the Lumia 820, with a "softer" shape to it, smaller screen. The back of the phone pops off so you can use any of seven differently colored "shells." The 820 also supports wireless charging.

Elop is back on stage, and he brings out Microsoft CEO Steve Ballmer.

Ballmer says its "amazing how far we've come in just 18 months" since forming the partnership. Ballmer is here to provide "a little bit broader context" to things. "Make no mistake about it, this is a year for Windows," he says "Windows Phone, Windows tablets, Windows PCs, this is a year for Windows."

Ballmer predicts "the next app developer to hit it really, really big, will be a developer on Windows," noting that there will be 400 million new devices shipping per year running Windows, including Lumia and the "Surface" tablet Microsoft unveiled this summer. It represents "the single largest opportunity" in unit terms for developers, says Ballmer. "It is unrivaled."

And that's the end. The company is not announcing pricing or availability but expects to give more detail in Q4.

When Elop was asked, during the Q&A that followed, how he felt about being "upstaged" last week by Samsung Electronics (005930KS), which was the first to debut a phone running Windows Phone 8, he replied that "anyone can get on stage and show a phone."

"We are very pleased to come before you today with the first working phone running Windows Phone 8."

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